Income Tax Assessment Act (No. 2) 1930

Legislation au C1930A00060 Not in force Act

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INCOME TAX ASSESSMENT (No. 2).

 

No. 60 of 1930.

An Act to amend the Income Tax Assessment Act 1922-1930.

[Assented to 16th December, 1930.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Income Tax Assessment Act (No. 2) 1930.

(2.) Section one of the Income Tax Assessment Act 1930 is amended by omitting sub-section (3.).

(3.) The Income Tax Assessment Act 1922-1929 as amended by the Income Tax Assessment Act 1930 is in this Act referred to as the Principal Act.

(4.) The Principal Act, as amended by this Act, may be cited as the Income Tax Assessment Act 1922-1930.

What is included in income.

2. Section sixteen of the Principal Act is amended by inserting in the first proviso to paragraph (d) after the word “licence” (first occurring) the words “or, if that lease is a lease of land, in effecting any improvements on the leased land”.

Taxation of companies.

3. Section twenty of the Principal Act is amended by inserting in sub-section (4.), after the word “tax” (first occurring), the words “for any financial year prior to that commencing on the first day of July One thousand nine hundred and twenty-three”.


 

Special deductions.

4. Section twenty-four of the Principal Act is amended by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:—

“(1.) In the case of a person (other than a company or an absentee) whose income is derived solely from property, there shall be deducted, from that income—

(a) the sum of Two hundred pounds less One pound for every Two pounds by which the income exceeds Two hundred pounds; or

(b) where the income does not exceed Two hundred pounds—the amount of the income.

“(2.) In the case of a person (other than a company or an absentee) whose income is derived solely from personal exertion, there shall be deducted, from that income—

(a) the sum of Three hundred pounds less One pound for every Three pounds by which the income exceeds Three hundred pounds; or

(b) where the income does not exceed Three hundred pounds—the amount of the income.

“(2a.) In the case of a person (other than a company or an absentee) whose income is derived partly from property and partly from personal exertion—

(a) there shall be deducted from so much of the income as is derived from property a sum which bears to the amount of deduction which would have been allowed under this section if the income had been derived from property the same proportion as so much of the income as is derived from property bears to the income; and

(b) there shall be deducted from so much of the income as is derived from personal exertion a sum which bears to the amount of deduction which would have been allowed under this section if the income had been derived from personal exertion the same proportion as so much of the income as is derived from personal exertion bears to the income”.

Persons to furnish returns.

5. Section thirty-two of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(1.) For the purpose of assessment and levy of income tax, every person shall, when called upon by the Commissioner by notice published in the Gazette, furnish to the Commissioner in the prescribed manner a return setting forth a full and complete statement of the total assessable income derived by him during the financial year ending on the preceding thirtieth day of June if—

(a) in the case of a resident (not being a company) the total assessable income—

(i) consists of income from personal exertion and is not less than the sum of Three hundred pounds; or


(ii) consists of income from property and is not less than the sum of Two hundred pounds; or

(iii) consists partly of income from personal exertion and partly of income from property and is not less than Two hundred pounds; or

(b) in the case of a company or an absentee the total assessable income exceeds the sum of One pound”.

Additional tax in certain cases.

6. Section sixty-seven of the Principal Act is amended by omitting from sub-section (2.) the words “the next succeeding section” and inserting in their stead the words “section sixty-eight or sixty-nine of this Act”.

7. Section ninety-four of the Principal Act is amended—

(a) by omitting the words “of land”; and

(b) by inserting at the end thereof the following sub-section:—

Covenant by mortgagor to pay tax.

“(2.) A covenant or stipulation in a mortgage, whether entered into before or after the commencement of this sub-section, which has or purports to have the purpose or effect of including in or adding to the interest payable, in any specified circumstances, by the mortgagor, any amount in respect of income tax payable by the mortgagee upon the interest to be paid under the mortgage, shall be void to the extent only to which it has or purports to have that purpose or effect”.

Application of Act.

8. The amendments effected by sections four and five of this Act shall apply to assessments for the financial year beginning on the first day of July, One thousand nine hundred and thirty and all subsequent years.

 

Overview

The Income Tax Assessment Act (No. 2) 1930 was enacted by the Australian Parliament to address amendments to the Income Tax Assessment Act 1922-1930. This Act introduced changes to the calculation of income, particularly by including improvements on leased land in the definition of income. It also altered the taxation of companies, introduced special deductions for individuals based on the source of their income, and modified the requirements for lodging tax returns, stipulating the threshold income amounts that necessitate the filing of a return. Furthermore, the Act nullified covenants in mortgage agreements that sought to incorporate income tax liabilities into mortgage interest payments. The amendments aimed to refine the taxation framework, ensuring it was more inclusive and reflective of the economic activities of individuals and companies.

Scope and Application

The Income Tax Assessment Act (No. 2) 1930 is an amendment to the Income Tax Assessment Act 1922-1930, primarily aimed at altering certain provisions related to the taxation of income. This Act applies to individuals and entities, including companies and absentees, who derive income from property or personal exertion. It specifically addresses the taxation of companies and introduces special deductions for certain income brackets, as well as modifications to the returns that must be furnished by taxpayers. The amendments outlined in sections four and five of this Act are applicable to assessments for the financial year starting on 1 July 1930 and all subsequent years. The Act extends its reach to the entire Commonwealth of Australia, thereby impacting taxpayers across the nation. There are no specific exclusions or exemptions mentioned in the provided text, although the scope of the Act may be further defined or restricted through subordinate instruments.

Key Provisions

The Income Tax Assessment Act (No. 2) 1930 introduces several amendments to the existing Income Tax Assessment Act 1922-1930, primarily focusing on the definition of income, taxation of companies, special deductions, and the obligation for individuals and companies to furnish returns. Section 2 amends the definition of income to include any expenditure made in effecting improvements on leased land (s. 2(1)). Section 3 modifies the taxation of companies by specifying that any tax for financial years prior to 1 July 1923 must be accounted for (s. 3). Section 4 revises the special deductions available to individuals, introducing a sliding scale for deductions based on income derived from property and personal exertion (s. 4(1)-(2a)). The Act imposes several obligations on individuals and entities. According to Section 5, every person is required to furnish a return to the Commissioner, detailing their total assessable income for the financial year if their income exceeds specified thresholds (s. 5(1)). This requirement applies to residents with income from personal exertion or property, and to companies or absentees whose income exceeds one pound. Section 7 mandates that any covenant in a mortgage that seeks to include income tax payable by the mortgagee in the interest payable by the mortgagor is void to the extent it has this effect (s. 7(2)). Breach of the obligations imposed by this Act can lead to various consequences. Although specific penalties are not detailed within the Act, the failure to furnish required returns or to comply with the tax obligations could potentially lead to additional tax liabilities or penalties as outlined in the broader tax legislation. For instance, non-compliance may result in the imposition of additional taxes as stipulated in Section 67 (s. 67), and covenants in mortgages that contravene Section 7 will be deemed void (s. 7(2)).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.